FMHA Loan Program

The United States Department of Agriculture (USDA) guarantees a loan program called the FMHA Program.

The FMHA Loan Program is $0.00 down, 100% financed, no monthly MI/MIP and no minimum credit score.  What this means to you as the home buyer is:

$0.00 Down - No cash required for downpayment
      1) The only cash you may need is for your Earnest Money (which you provide to your realtor at the time your Purchase Contract is accepted.)
      2)  Appraisal Fee (Fixed fee of $300.00) collected at the time you have an accepted purchase contract.
 
These two items (earnest money + $300) will be refunded to you after closing because they are included in your loan.  So, if you had to pay $100 in Earnest Money and the fixed $300 for the appraisal, after you close on the house, you would receive a check for $400.00.
 
100% Financed -  All Closing Costs and Prepaids are Financed into your loan.
 
No Monthly MI/MIP - MI stands for Mortgage Insurance.  MIP stands for Mortgage Insurance Premium.  This is an Insurance Policy that is required by the government for any loan program that has a down payment of less than than 20% of the sale price.  If you were going with any other loan program you would be required to pay a 1.5% up front MIP and a monthly MI payment for a minimum of 5 years.   Because the FMHA Loan Program is guaranteed by the Department of Agriculture there is NO monthly MI/MIP. 

No Minimum Credit Score - The United States Department of Agriculture does not require a minimum credit score to qualify for the FMHA Loan Program. 

For more information about this loan program, Click here
(Refer to the "Loan Guarantee Program")

For Eligible areas in Ohio, Click here.